It's typically an ambient light sensor. Does it have automatic headlight's that come on by themselves at night? If so, it could be the sensor that determines whether it's day or night. Some cars have a "sun load" sensor for the A/C. My Lincoln has a red LED in it for the security system that flashes when it's parked.
One simple test to see if it's for the headlights is to start the car and...if it's daylight out, cover it with a dark towel and wait about 20 seconds or so and the headlights should turn on. If its nighttime, hold a flashlight on it for 20 seconds or so and the headlights should turn off! It works that simple. It delays instead of working immediately to compensate for things like driving under a bridge during the day or under a street light at night so the headlights aren't turning on and off at improper times.
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